VA Appraisal Of New Construction

[DonRico]

I may be checking the wrong box at the bottom of page 2. I don't think I've ever heard a clear explanation of that part of the process. I'd like your opinions and any standard comments that you put in.

The New Home is at the Customer Preference Stage -- Power and Water is on and functioning. There may be some painting or some carpeting left to install, or the Fridge is not hooked up yet. But the Subject meets all Minimum Property Reqts. It is checked as "Existing" with an Age of "Zero" on page 1.

What is the proper check box on page 2 ? Is it "As Is " ?? Or one of the Subject To boxes ??

The text I put in the check box area reads --
"On the Date of Observation, the Subject was at the Customer Preference Stage with only the Buyer's Final Walk-Thru needed for Closing. See Interior Photos."

Please post your Comments.

 

[Don Clark]

I may be checking the wrong box at the bottom of page 2. I don't think I've ever heard a clear explanation of that part of the process. I'd like your opinions and any standard comments that you put in.

The New Home is at the Customer Preference Stage -- Power and Water is on and functioning. There may be some painting or some carpeting left to install, or the Fridge is not hooked up yet. But the Subject meets all Minimum Property Reqts. It is checked as "Existing" with an Age of "Zero" on page 1.

What is the proper check box on page 2 ? Is it "As Is " ?? Or one of the Subject To boxes ??

The text I put in the check box area reads --
"On the Date of Observation, the Subject was at the Customer Preference Stage with only the Buyer's Final Walk-Thru needed for Closing. See Interior Photos."

Please post your Comments.

It would then be, according to VA 95% complete. It would be subject to repairs. It is not subject to completion, according to VA, unless it is by Plans & Specs. It will require a final Inspection.

And, in accordance with USPAP a Final Inspection is a New Assignment. You will need to state that you have provided service in the past 3 years. This is what I put in a Satisfactory Completion Form:

2014-2015 USPAP Requirements: USPAP considers a Final Inspection to be a New Assignment.

"I have provided services as an appraiser, regarding the property that is the subject of this report within the three year period immediately preceeding acceptance of this assignment." That service is the current appraisal for which this final inspection is being completed". This final inspection is not an appraisal. It is a valuation services not requiring an opinion of value.

 

[DonRico]

Thank You once again, Don.

The "subject to repairs" box is what has the underwriter (or processor) in a twist. They want a list of repair items and the associated cost. I do state that the Property meets MPR. The only 'repairs" may be touch up paint.

At that stage a 1004D Final seems like an unnecessary $100 charge to the Veteran.

 

[gregb]

If subject meets MPR, check the "as is" box
If subject does not meet MPR, check the "subject to repairs" box

 

[Tru Red]

Subject to. Just had this come up on a VA appraisal with the carpeting not yet installed. I submitted it as is and it came back to me after talking with the lender and the VA that it should be subject to. So....I go back and get another $100 later on.

 

[DonRico]

And the VA specifically mentions "floor covering" as a Customer Preference Item. If it's complete to that point and meets MPR.....it should be as is. I absolutely hate to ding the Veteran for $100, It's un-necessary as long as the Vet gets a final walk-thru before closing.

 

[JTip]

I absolutely hate to ding the Veteran for $100, It's un-necessary as long as the Vet gets a final walk-thru before closing.

$100 is nothing for what you get in return.

As the appraiser you discovered the issues and compiled a list. You will pick up a lot more on the final in 15 minutes than the buyer doing a final walk through. $100 for a pro to check out my 30 year investment, certified and signed? That's a deal.

 

[TN Pro]

I thought the $100 final inspection fee could not be passed on to the vet?

 

[jay trotta]

Getting anyone to come to a House for a Repair in my area is; $80-95 just to get there (Travel Fee) and the additional cost is the repair(s)/parts, hourly, etc.; Plumbers, Carpenters, electricians etc. and auto repair guys here get; $125 just for diagnostics, plus the cost of parts & hourly charges.

If you were in my area, you would need to rethink your Costs; Time / Travel / report writing and outside expenses.
Good Luck

 

[Don Clark]

Thank You once again, Don.

The "subject to repairs" box is what has the underwriter (or processor) in a twist. They want a list of repair items and the associated cost. I do state that the Property meets MPR. The only 'repairs" may be touch up paint.

At that stage a 1004D Final seems like an unnecessary $100 charge to the Veteran.

I never use a 1004D. I use a Satisfactory Completion certification form. You could also do it on a letter. It is not 100% complete so needs a final inspection. The fee is minor in comparison to other cost.